Avida Finans receives a remark and administrative fine

Avida Finans AB (Avida or the company) is a Swedish credit market company authorised to conduct financing business pursuant to the Banking and Financing Business Act (2004:297). The company, among other services, offers loans to consumers. Finansinspektionen has investigated whether Avida has met in its creditworthiness assessments the requirements set out in sections 6 and 12 of the Consumer Credit Act (2010:1846). The scope of the investigation includes loans that the company granted to consumers during weeks 24, 25, 29 and 30 in 2024. The loan amounts ranged from SEK 10,000 to SEK 125,000.

The investigation shows that, in general, Avida has a thorough creditworthiness assessment process. However, due to the lack of coordination between its application form and creditworthiness assessment process, the company has granted and paid out loans to at least 34 consumers whose financial situation at the time of the application – and based on the company’s own calculation model – would not have allowed them to meet their commitment under the loan agreement. Avida has thus been in violation of section 12, first paragraph of the Consumer Credit Act.

The identified violations are of such a nature that Finansinspektionen considers there to be grounds on which to intervene against Avida. The violations are not so serious that there is cause to consider withdrawing the company’s authorisation or issuing the company a warning. Finansinspektionen is therefore issuing Avida a remark that, in order to be an adequate intervention, will be accompanied by an administrative fine of SEK 20 million.